Exhibit 10.1


 


SECURITIES
PURCHASE AGREEMENT


 


This
Securities Purchase Agreement (this “Agreement”) is dated as of December 15,
2015 by and among MRI Interventions, Inc., a Delaware corporation (the “Company”), and each purchaser identified
on the signature pages hereto (each, including its successors and assigns, a “Purchaser,” and collectively,
the “Purchasers”).


 


RECITALS


 


A.          The
Company is offering for sale units (“Units”), with each Unit consisting of (i) one share of the Company’s
common stock, par value $0.01 per share (the “Common Stock”), (ii) a warrant to purchase 0.40 shares of Common
Stock, and (iii) a warrant to purchase 0.30 shares of Common Stock (the “Offering”).


 


B.
         The Company has engaged one or more placement agents for the Offering on a “best efforts” basis.


 


C.          Pursuant
to this Agreement, each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms
and conditions set forth herein, that aggregate number of Units set forth below such Purchaser’s name on the signature page
of this Agreement.


 


D.          The
Company and each Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule
506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission
(the “Commission”) under the Securities Act.


 


E.
         Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement, substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”),
pursuant to which, among other things, the Company will agree to provide certain registration rights with respect to the Shares
(defined below) and the Warrant Shares (as defined below) under the Securities Act and the rules and regulations promulgated thereunder
and applicable state securities laws.


 


NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers hereby agree as follows:


 


ARTICLE
I

DEFINITIONS


 


1.1         Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have
the meanings indicated in this Section 1.1:


 


“8-K
Filing” has the meaning set forth in Section 4.5.


 


“Action”
means any action, suit, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation
pending or, to the knowledge of the Company, overtly threatened in writing against the Company, any Subsidiary or any of their
respective properties or any officer, director or employee of the Company or any Subsidiary acting in his or her capacity as an
officer, director or employee, before or by any federal, state, county, local or foreign court, arbitrator, governmental or administrative
agency, regulatory authority, stock market, stock exchange or trading facility.


 


“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls,
is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the
Securities Act.


 


“Agreement”
has the meaning set forth in the Preamble.


 


“A
Warrant” has the meaning set forth in Section 2.1.


 






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“BHCA”
has the meaning set forth in Section 3.1(rr).


 


“Board
of Directors” means the board of directors of the Company.


 


“Business
Day” means any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day
on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.


 


“B
Warrant” has the meaning set forth in Section 2.1.


 


“Closing”
means the closing of the purchase and sale of the Units pursuant to this Agreement.


 


“Closing
Date” means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all of the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 hereof are
satisfied or waived, as the case may be, or such other date as the parties may agree.


 


“Commission”
has the meaning set forth in the Recitals.


 


“Common
Stock” has the meaning set forth in the Recitals, and also includes any other class of securities into which the Common
Stock may hereafter be reclassified or changed.


 


“Common
Stock Equivalents” means any securities of the Company or any Subsidiary which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or
other securities that entitle the holder to receive, directly or indirectly, Common Stock.


 


“Company”
has the meaning set forth in the Preamble.


 


“Company
Counsel” means Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, or such other legal counsel as may be engaged
by the Company.


 


“Company
Deliverables” has the meaning set forth in Section 2.2(a).


 


“Control”
(including the terms “controlling,” “controlled by” or “under common control with”) means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.


 


“Disclosure
Materials” has the meaning set forth in Section 3.1(h).


 


“Effective
Date” means the date on which the initial Registration Statement required by Section 2(a) of the Registration Rights
Agreement is first declared effective by the Commission.


 


“Environmental
Laws” has the meaning set forth in Section 3.1(dd).


 


“Evaluation
Date” has the meaning set forth in Section 3.1(t).


 


“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations
promulgated thereunder.


 


“FDA”
has the meaning set forth in Section 3.1(pp).


 


“FDCA”
has the meaning set forth in Section 3.1(pp).


 


“Federal
Reserve” has the meaning set forth in Section 3.1(rr).


 


“GAAP”
means U.S. generally accepted accounting principles, as applied by the Company.


 






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“Indebtedness”
means (i) any liabilities for borrowed money in excess of $50,000 (which, for the avoidance of doubt, does not include trade accounts
payable), (ii) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or
not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business, and (iii) the
present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP.


 


“Indemnified
Person” has the meaning set forth in Section 4.10(b).


 


“Intellectual
Property Rights” has the meaning set forth in Section 3.1(p).


 


“Lien”
means any lien, charge, claim, encumbrance, security interest, right of first refusal, preemptive right or other restriction of
any kind.


 


“Major
Purchaser” means a Purchaser, or group of Purchasers that are Affiliates (including affiliated funds), that purchases
$3 million or more of Securities, in the aggregate, at the Closing.


 


“Material
Adverse Effect” means a material adverse effect on the results of operations, assets, business or condition (financial
or otherwise) of the Company and its Subsidiaries, taken as a whole, except that any of the following, either alone or in combination,
shall not be deemed a Material Adverse Effect: (i) effects caused by changes or circumstances affecting general market or
other conditions in the U.S. economy or which are generally applicable to the industry in which the Company operates, provided
that such effects are not borne to a materially disproportionate degree by the Company compared to other companies operating in
the same industry as the Company; (ii) effects resulting from or relating to the announcement or disclosure of the sale of
the Securities or other transactions contemplated by this Agreement or the Offering; or (iii) effects caused by any event,
occurrence or condition resulting from or relating to the taking of any action in accordance with this Agreement.


 


“Material
Contract” means any contract of the Company that has been filed or was required to have been filed as an exhibit to
the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.


 


“Material
Permits” has the meaning set forth in Section 3.1(n).


 


“Money
Laundering Laws” has the meaning set forth in Section 3.1(ss).


 


“New
York Courts” means the state and federal courts sitting in the City of New York, Borough of Manhattan.


 


“OFAC”
has the meaning set forth in Section 3.1(kk).


 


“Offering”
has the meaning set forth in the Recitals.


 


“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.


 


“Placement
Agent” means, collectively, any placement agent(s) engaged by the Company for the Offering.


 


“Press
Release” has the meaning set forth in Section 4.5.


 


“Principal
Trading Market” means the Trading Market on which the Common Stock is primarily listed on and/or quoted for trading,
which, as of the date of this Agreement and the Closing Date, shall be the OTCQB tiered marketplace organized by OTC Markets Group
Inc.


 


“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or overtly threatened in writing.


 


“Product”
has the meaning set forth in Section 3.1(pp).


 






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“Purchase
Price” means $0.3246 per Unit.


 


“Purchaser”
or “Purchasers” has the meaning set forth in the Preamble.


 


“Purchaser
Deliverables” has the meaning set forth in Section 2.2(b).


 


“Purchaser
Party” has the meaning set forth in Section 4.10(a).


 


“Registration
Rights Agreement” has the meaning set forth in the Recitals.


 


“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale by the Purchasers of the Registrable Securities (as defined in the Registration Rights Agreement).


 


“Regulation
D” has the meaning set forth in the Recitals.


 


“Required
Approvals” has the meaning set forth in Section 3.1(e).


 


“Required
Delivery Date” has the meaning set forth in Section 4.1(c).


 


“Required
Purchasers” means Purchasers holding or having the right to acquire 66.66% of the Shares and the Warrant Shares, at
the applicable time.


 


“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.


 


“SEC
Reports” has the meaning set forth in Section 3.1(h).


 


“Securities”
means, collectively, the Units, the Shares, the A Warrants, the B Warrants and the Warrant Shares underlying both the A Warrants
and the B Warrants.


 


“Securities
Act” has the meaning set forth in the Recitals.


 


“Shares”
means, as the context requires, (i) the shares of Common Stock being acquired by a Purchaser pursuant to this Agreement, or (ii)
the aggregate number of shares of Common Stock being acquired by all Purchasers together pursuant to this Agreement.


 


“Short
Sales” include, without limitation (i) all “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts,
options, puts, calls, short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange
Act) and similar arrangements (including on a total return basis), and (ii) sales and other transactions through non-U.S. broker
dealers or foreign regulated brokers (but shall not be deemed to include the location and/or reservation of borrowable shares
of Common Stock).


 


“Subscription
Amount” means, with respect to each Purchaser, the aggregate amount paid by such Purchaser, and accepted by the Company,
for the Units purchased hereunder.


 


“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, include any subsidiary
of the Company formed or acquired after the date hereof.


 


“Trading
Day” means (i) a day on which the Common Stock is listed or quoted on its Principal Trading Market, or (ii) if
the Common Stock is not listed or quoted on any Trading Market, a day on which the Common Stock is quoted in the over the counter
market as reported in the OTC Pink (also known as “Pink Sheets”) by OTC Markets Group Inc. (or any similar organization
or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed
or quoted as set forth in clause (i) or (ii) above, then Trading Day shall mean a Business Day.


 






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“Trading
Market” means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Stock Market (any market tier) or the
OTCQX or OTCQB tiered marketplace organized by OTC Markets Group Inc., on which the Common Stock is listed or quoted for trading
on the date in question.


 


“Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto, the A Warrants, the B Warrants, the Registration
Rights Agreement, the Transfer Agent Instructions and any other documents or agreements explicitly contemplated hereunder.


 


“Transfer
Agent” means Continental Stock Transfer & Trust Co., the current transfer agent of the Company, or any successor
transfer agent for the Company.


 


“Transfer
Agent Instructions” has the meaning set forth in Section 2.2(a)(iv).


 


“Unit”
has the meaning set forth in the Recitals.


 


“Warrants”
means, as the context requires, (i) the warrants being acquired by a Purchaser pursuant to this Agreement, including both the
A Warrant and the B Warrant, or (ii) the aggregate warrants being acquired by all Purchasers together pursuant to this Agreement.


 


“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.


 


ARTICLE
II

PURCHASE AND SALE


 


2.1          Closing.


 


(a)          Amount.
Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Purchaser,
and each Purchaser shall, severally and not jointly, purchase from the Company, such number of shares of Common Stock equal to
the quotient resulting from dividing (i) the Subscription Amount for such Purchaser by (ii) the Purchase Price, rounded
down to the nearest whole share. In addition, each Purchaser shall receive: (i) one Warrant to purchase a number of Warrant Shares
equal to forty percent (40%) of the number of Shares purchased by such Purchaser, rounded up to the nearest whole share (“A
Warrant”), and (ii) one Warrant to purchase a number of Warrant Shares equal to thirty percent (30%) of the number
of Shares purchased by such Purchaser, rounded up to the nearest whole share (“B Warrant”). The A Warrants
shall have an exercise price equal to $0.4058 per Warrant Share. The B Warrants
shall have an exercise price equal to $0.5275 per Warrant Share.


 


(b)          Closing.
The Closing of the purchase and sale of the Units pursuant to hereto shall take place at the offices of Baker, Donelson, Bearman,
Caldwell & Berkowitz, PC on the Closing Date or at such other location or remotely by facsimile transmission or other electronic
means as determined by the Company.


 


(c)          Form
of Payment. Unless otherwise agreed by the Company, on or before the Closing Date, each Purchaser shall wire its Subscription
Amount, in United States dollars and in immediately available funds, in accordance with the written wire transfer instructions
provided by the Company. The Company shall, within three Trading Days after the Closing, deliver or cause to be delivered to each
Purchaser (i) one or more original stock certificates evidencing the number of Shares such Purchaser purchased, (ii) one
or more A Warrants, substantially in the form attached hereto as Exhibit B, and (iii) one or more B Warrants, substantially
in the form attached hereto as Exhibit C, evidencing the appropriate number of Warrant Shares as provided in Section
2.1(a) above.


 


2.2          Closing
Deliveries.


 


(a)          At
or prior to the Closing, the Company shall issue, deliver or cause to be delivered to the Purchasers or the Placement Agent, as
applicable, the following (the “Company Deliverables”):


 


(i)           this
Agreement, duly executed by the Company;


 






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(ii)          a
customary legal opinion from Company Counsel, dated as of the Closing Date, executed by such counsel and addressed to the Purchasers
and the Placement Agent;


 


(iii)         facsimile
copies of the issued and duly executed Shares and Warrants being purchased by such Purchaser at the Closing pursuant to this Agreement;


 


(iv)         a
copy of the irrevocable Transfer Agent Instructions, which instructions shall have been delivered to and acknowledged in writing
by the Company’s transfer agent (the “Transfer Agent Instructions”);


 


(v)          the
Registration Rights Agreement, duly executed by the Company; and


 


(vi)         a
certificate of the Secretary of the Company, dated as of the Closing Date, (a) certifying the resolutions adopted by the
Board of Directors or a duly authorized committee thereof approving the transactions contemplated by this Agreement and the other
Transaction Documents and the issuance of the Securities, and (b) certifying the current versions of the certificate of incorporation
and bylaws of the Company.


 


(b)          At
or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following (the “Purchaser
Deliverables”):


 


(i)           this
Agreement, duly executed by such Purchaser;


 


(ii)          its
Subscription Amount, in United States dollars and in immediately available funds, in the amount indicated below such Purchaser’s
name on the applicable signature page hereto under the heading “Aggregate Purchase Price (Subscription Amount)” by
wire transfer in accordance with the Company’s written instructions;


 


(iii)         the
Registration Rights Agreement, duly executed by such Purchaser; and


 


(iv)         a
fully completed and duly executed Investor Questionnaire in the form provided by the Company.


 


ARTICLE
III

REPRESENTATIONS AND WARRANTIES


 


3.1          Representations
and Warranties of the Company. The Company hereby represents and warrants as of the date hereof and as of the Closing Date
(except for the representations and warranties that speak as of a specific date, which shall be made as of such date), to each
Purchaser:


 


(a)          Subsidiaries.
The Company has no direct or indirect Subsidiaries other than those listed in Schedule 3.1(a) hereto. Except as disclosed
in Schedule 3.1(a) hereto, the Company owns, directly or indirectly, all of the capital stock or comparable equity interests
of each Subsidiary, if any, free and clear of any and all Liens, and all the issued and outstanding shares of capital stock or
comparable equity interest of each Subsidiary, if any, are validly issued and are fully paid, non-assessable and free of preemptive
and similar rights to subscribe for or purchase securities.


 


(b)          Organization
and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own or lease and use its properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate of incorporation,
bylaws or other organizational or charter documents. The Company and each of its Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not have a Material Adverse Effect, and no Proceeding has been instituted, is pending, or, to the knowledge
of the Company, has been threatened in writing in any such jurisdiction revoking, limiting or curtailing or seeking to revoke,
limit or curtail such power and authority or qualification.


 






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(c)          Authorization;
Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder
and thereunder. The Company’s execution and delivery of each of the Transaction Documents to which it is a party and the
consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery of
the Shares and the Warrants and the reservation for issuance and the subsequent issuance of the Warrant Shares upon exercise of
the Warrants) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate
action is required by the Company, its Board of Directors or its stockholders in connection therewith other than in connection
with the Required Approvals. Each of the Transaction Documents to which the Company is a party has been (or upon delivery will
have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute the legal,
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general
application, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.


 


(d)          No
Conflicts. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party and
the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the issuance
of the Shares and Warrants and the reservation for issuance and issuance of the Warrant Shares) do not and will not (i) conflict
with or violate any provisions of the Company’s certificate of incorporation or bylaws or otherwise result in a violation
of the organizational documents of the Company, (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would result in a default) under, result in the creation of any Lien upon any of the properties or assets
of the Company or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse
of time or both) of, any Material Contract, or (iii) subject to the Required Approvals, conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority
to which the Company is subject (including federal and state securities laws, assuming the correctness of the representations
and warranties made by the Purchasers herein), or by which any property or asset of the Company is bound or affected, except in
the case of clauses (ii) and (iii) such as would not, individually or in the aggregate, have a Material Adverse Effect.


 


(e)          Filings,
Consents and Approvals. Neither the Company nor any of its Subsidiaries is required to obtain any consent, waiver, authorization
or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority, self-regulatory organization (including the Principal Trading Market) or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents (including, without limitation, the issuance of the Shares
and Warrants and the reservation for issuance and issuance of the Warrant Shares), other than (i) the filing with the Commission
of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings
required by applicable state securities laws, (iii) the filing of a Notice of Exempt Offering of Securities on Form D with
the Commission under Regulation D of the Securities Act, (iv) the filing of any requisite notices and/or application(s) to
the Principal Trading Market for the issuance and sale of the Securities and the listing of the Shares and Warrant Shares for
trading or quotation, as the case may be, thereon in the time and manner required thereby, (v) the filings contemplated in
Section 4.5 of this Agreement, and (vi) those that have been made or obtained prior to the date of this Agreement
(collectively, the “Required Approvals”).


 


(f)          Issuance
of the Securities. The Shares have been duly authorized and, when issued and paid for in accordance with the terms of the
Transaction Documents, will be duly and validly issued, fully paid and nonassessable and free and clear of all Liens, other than
restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not be
subject to preemptive or similar rights of stockholders. The Warrants have been duly authorized and, when issued and paid for
in accordance with the terms of the Transaction Documents, will be duly and validly issued, free and clear of all Liens, other
than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not
be subject to preemptive or similar rights of stockholders. The Warrant Shares issuable upon exercise of the Warrants have been
duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents and the Warrants will
be duly and validly issued, fully paid and nonassessable, free and clear of all Liens, other than restrictions on transfer provided
for in the Transaction Documents or imposed by applicable securities laws, and shall not be subject to preemptive or similar rights
of stockholders. Assuming the accuracy of the representations and warranties of the Purchasers in this Agreement, the Securities
will be issued in compliance with all applicable federal and state securities laws. As of the Closing Date, the Company shall
have reserved from its duly authorized capital stock the number of shares of Common Stock issuable upon exercise of the Warrants
(without taking into account any limitations on the exercise of the Warrants set forth in the Warrants). The Company shall, so
long as any of the Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and
unissued capital stock, solely for the purpose of effecting the exercise of the Warrants, the number of shares of Common Stock
issuable upon exercise of the Warrants (without taking into account any limitations on the exercise of the Warrants set forth
in the Warrants).


 






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(g)          Capitalization.
The number of shares and type of all authorized, issued and outstanding capital stock, options and other securities of the Company
as of September 30, 2015 (whether then convertible into or exercisable or exchangeable for shares of capital stock of the Company)
is set forth in Schedule 3.1(g) hereto. Except as set forth in Schedule 3.1(g), no Person has any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents that have not been effectively waived as of the Closing Date. Except as set forth in Schedule 3.1(g),
the issuance and sale of the Units will not obligate the Company to issue shares of Common Stock or other securities to any Person
(other than the Purchasers and the Placement Agent) and will not result in a right of any holder of Company securities to adjust
the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock
of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all applicable federal and
state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others
is required for the issuance and sale of the Securities.


 


(h)          SEC
Reports; Disclosure Materials. The Company has filed with the Commission all reports, schedules, forms, statements and other
documents required to be filed by the Company under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof
(the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports” or the “Disclosure Materials,” as context requires), on a
timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective filing dates, or to the extent corrected or updated by a subsequent amendment or
restatement, the SEC Reports complied in all material respects with the requirements of the Exchange Act and the rules and regulations
of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. Each of the Material Contracts to which the Company or
any Subsidiary is a party or to which the property or assets of the Company or any of its Subsidiaries are subject has been filed
(or incorporated by reference) as an exhibit to the SEC Reports.


 


(i)          Financial
Statements. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing
(or to the extent corrected or updated by a subsequent amendment or restatement). Such financial statements have been prepared
in accordance with GAAP, except as may be otherwise specified in such financial statements or the notes thereto and except that
unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated subsidiaries taken as a whole as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal year-end audit
adjustments.


 


(j)          Material
Changes. Since December 31, 2014, (i) there have been no events, occurrences or developments that have had or would reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect, (ii) except as disclosed in the SEC Reports,
the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the
Company has not altered materially its method of accounting or the manner in which it keeps its accounting books and records,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock, (v) except as disclosed in the SEC Reports,
there has not been any material change or amendment to, or any waiver of any material right by the Company under, any Material
Contract under which the Company or any of its Subsidiaries is bound or subject.


 






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(k)          Litigation.
There is no Action which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction
Documents or the issuance of the Securities or (ii) except as disclosed in the SEC Reports, would, if there were an unfavorable
decision, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. Neither the
Company nor any Subsidiary, nor any director or executive officer thereof, is or has within the past five years been the subject
of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. To the knowledge of the Company, within the past five years there has not been, and there is not pending or contemplated,
any investigation by the Commission involving the Company or any current director or executive officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.


 


(l)          Employment
Matters. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company which would have a Material Adverse Effect. None of the Company’s or any Subsidiary’s employees is
a member of a union that relates to such employee’s relationship with the Company or Subsidiary, and neither the Company
nor any of its Subsidiaries is a party to a collective bargaining agreement. The Company and each Subsidiary believes that its
relationship with its employees is good. No current executive officer of the Company (as defined in Rule 501(f) under the Securities
Act) has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or
otherwise terminate such officer’s employment with the Company or any such Subsidiary. To the knowledge of the Company,
no current executive officer is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement with the Company, or any other contract or agreement
or any restrictive covenant in favor of a third party, and to the knowledge of the Company, the continued employment of each such
executive officer does not subject the Company or any Subsidiary to any liability with respect to any of the foregoing matters.
The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating
to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be
in compliance would not, individually or in the aggregate, have a Material Adverse Effect.


 


(m)         Compliance.
Neither the Company nor any of its Subsidiaries (i) is in default under or in violation of (and no event has occurred that
has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any of its Subsidiaries
under), nor has the Company or any of its Subsidiaries received written notice of a claim that it is in default under or that
it is in violation of, any Material Contract (whether or not such default or violation has been waived), (ii) is in violation
of any order of any court, arbitrator or governmental body having jurisdiction over the Company, its Subsidiaries or their respective
properties or assets, or (iii) is in violation of, or in receipt of written notice that it is in violation of, any statute,
rule or regulation of any governmental authority or self-regulatory organization (including the Principal Trading Market) applicable
to the Company, except in each case as would not, individually or in the aggregate, have a Material Adverse Effect.


 


(n)          Regulatory
Permits. The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate
federal, state, local or foreign regulatory authorities necessary to conduct its respective business as currently conducted and
as described in the SEC Reports, except where the failure to possess such permits, individually or in the aggregate, has not and
would not have a Material Adverse Effect (“Material Permits”). Neither the Company nor any of its Subsidiaries
has received any notice of Proceedings relating to the revocation or material adverse modification of any such Material Permits.


 


(o)          Title
to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned by them,
if any. The Company and its Subsidiaries have good and marketable title to all tangible personal property owned by them that is
material to the business of the Company and its Subsidiaries, taken as whole, in each case free and clear of all Liens except
as disclosed in Schedule 3.1(o) or such as do not materially affect the value of such property and do not interfere with
the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities
held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with
such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and facilities
by the Company and its Subsidiaries.


 






    	 	 9	 



     


    

 


(p)          Patents
and Trademarks. To the knowledge of the Company, the Company and its Subsidiaries own, possess, license or have other rights
to use, all patents, patent applications, trade and service marks, trade and service mark applications and registrations, trade
names, trade secrets, inventions, copyrights, licenses, technology, know-how and other intellectual property rights and similar
rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which
the failure to so have would have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
There is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by any Person that the Company’s
business as now conducted infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary
rights of such Person. To the knowledge of the Company, there is no existing infringement by another Person of any of the Intellectual
Property Rights that would have a Material Adverse Effect. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights, except where failure to do so
would not, individually or in the aggregate, have a Material Adverse Effect.


 


(q)          Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as the Company believes to be prudent and customary in the businesses and locations in which the Company
and the Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has received any notice of cancellation of any
such insurance, nor, to the knowledge of the Company, will it or any Subsidiary be unable to renew their respective existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business.


 


(r)          Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the executive officers or directors of the
Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with
the Company or any Subsidiary (other than for services as employees, officers and directors), that would be required to be disclosed
pursuant to Item 404 of Regulation S-K promulgated under the Securities Act.


 


(s)          Internal
Accounting Controls. The Company and its Subsidiaries maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to
maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded accountability for assets and liabilities
is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any
differences.


 


(t)          Sarbanes-Oxley;
Disclosure Controls. The Company is in compliance in all material respects with all of the provisions of the Sarbanes-Oxley
Act of 2002 which are applicable to it as of the Closing Date. The Company has established disclosure controls and procedures
(as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) for the Company and designed such disclosure
controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits
under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls
and procedures as of the end of the period covered by the Company’s most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the Company’s
internal control over financial reporting (as such term is defined in the Exchange Act) that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control over financial reporting.


 






    	 	 10	 



     


    

 


(u)          Certain
Fees. No person or entity will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or a Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company, other than placement agent, legal, accounting and other fees
and expenses customary in similar offerings that are being paid by the Company. The Company shall indemnify, pay, and hold each
Purchaser harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out-of-pocket
expenses) arising in connection with any such right, interest or claim.


 


(v)          Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2 of this Agreement and the accuracy of the information disclosed in the Investor Questionnaires provided by the Purchasers, no
registration under the Securities Act is required for the offer and sale of the Securities by the Company to the
Purchasers under the Transaction Documents. The issuance and sale of the Securities hereunder does not contravene the rules
and regulations of the Principal Trading Market.


 


(w)          Investment
Company. The Company is not, and immediately after receipt of payment for the Shares and Warrants, will not be an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in
a manner so that it will not become subject to the Investment Company Act of 1940, as amended.


 


(x)          Registration
Rights. Except in connection with the Offering, and except as set forth in the Registration Rights Agreement and Schedule
3.1(x) hereto, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities
of the Company.


 


(y)          Listing
and Maintenance Requirements. The Company’s Common Stock is registered pursuant to Section 12(g) of the Exchange Act,
and the Company has taken no action designed to terminate the registration of the Common Stock under the Exchange Act, nor has
the Company received any notification that the Commission is contemplating terminating such registration. The Company has not,
in the twelve (12) months preceding the date hereof, received written notice from the Principal Trading Market to the effect
that the Company is not in compliance with the listing or maintenance requirements of the Principal Trading Market. The Company
is in compliance with all listing and maintenance requirements of the Principal Trading Market on the date hereof.


 


(z)          Rights
Agreements. The Company has not adopted any stockholder rights plan or similar arrangement relating to accumulations of beneficial
ownership of Common Stock or a change in control of the Company.


 


(aa)        Disclosure.
The Company confirms that it has not provided, and to the knowledge of the Company, none of its executive officers or directors
nor any other Person acting on its or their behalf has provided, and it has not authorized the Placement Agent to provide, any
Purchaser or its respective agents or counsel with any information that it believes constitutes material, non-public information
(i) except insofar as the existence, provisions and terms of the Transaction Documents and the proposed transactions hereunder
may constitute such information, all of which will be disclosed by the Company in the manner contemplated by Section 4.5 hereof, or (ii) unless such Purchaser shall have executed a written agreement regarding the confidentiality and use of such
information. The Company understands and confirms that the Purchasers will rely on the foregoing representations in effecting
transactions in securities of the Company.


 


(bb)       No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company nor, to the knowledge of the Company, any Person acting on its behalf has, directly or indirectly, at any
time within the past six (6) months, made any offers or sales of any Company security or solicited any offers to buy any
Company security under circumstances that would (i) eliminate the availability of the exemption from registration under Regulation
D under the Securities Act in connection with the offer and sale by the Company of the Units as contemplated hereby or (ii) cause
the Offering to be integrated with prior offerings by the Company for purposes of any stockholder approval provisions, including,
without limitation, under the rules and regulations of any Trading Market on which any of the securities of the Company are listed
or quoted.


 






    	 	 11	 



     


    

 


(cc)        Tax
Matters. The Company and each of its Subsidiaries (i) has prepared and filed (or has requested valid extensions for)
all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which
it is subject, and (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith, with respect to
which adequate reserves have been set aside on the books of the Company, except in either case where the failure to prepare, file
or pay would not have a Material Adverse Effect. There are no unpaid taxes in any material amount claimed to be due by the Company
or any of its Subsidiaries by the taxing authority of any jurisdiction.


 


(dd)        Environmental
Matters. To the knowledge of the Company, neither the Company nor any of its Subsidiaries (i) is in violation of any
statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to
the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment
or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), (ii) owns or
operates any real property contaminated with any substance that is in violation of any Environmental Laws, (iii) is liable
for any off-site disposal or contamination pursuant to any Environmental Laws, or (iv) is subject to any claim relating to
any Environmental Laws, which violation, contamination, liability or claim has had or would have, individually or in the aggregate,
a Material Adverse Effect; and, to the knowledge of the Company, there is no pending investigation or investigation threatened
in writing that could reasonably be expected to lead to such a claim.


 


(ee)        No
General Solicitation. Neither the Company nor, to the knowledge of the Company, any Person acting on behalf of the Company
has offered or sold any of the Units by any form of general solicitation or general advertising (within the meaning of Regulation
D).


 


(ff)         Accredited
Investors Only. Upon Closing, and assuming the accuracy of the Purchasers’ representations and warranties under this
Agreement, the Company has offered and sold the Securities only to “accredited investors” as such term is defined
pursuant to the Securities Act and Rule 501 under Regulation D.


 


(gg)       Unlawful
Payments. To the knowledge of the Company, none of the Company, any of its Subsidiaries, nor any directors, executive officers,
employees, agents or other Persons acting at the direction of or on behalf of the Company or any of its Subsidiaries, has, in
the course of its actions for or on behalf of the Company: (a) used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to foreign or domestic political activity; (b) made any unlawful payments
to any foreign or domestic governmental officials or employees or to any foreign or domestic political parties or campaigns from
corporate funds; (c) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (d) made any
other unlawful bribe, rebate, payoff, influence payment, kickback or other material unlawful payment to any foreign or domestic
government official or employee.


 


(hh)       Off
Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company (or any Subsidiary)
and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its SEC Reports and
is not so disclosed and would have a Material Adverse Effect.


 


(ii)          Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice
given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the
transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Shares and Warrants. The Company
represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.


 


(jj)          Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf (other than the Placement Agent, with
respect to which no representation is made) has, (i) taken, directly or indirectly, any action designed to cause or to result
in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the
Securities, or (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities in violation
of Regulation M under the Exchange Act, other than, in the case of clause (ii), compensation paid to the Placement Agent in connection
with the placement of the Securities.


 






    	 	 12	 



     


    

 


(kk)        PFIC.
Neither the Company nor any of its Subsidiaries is or intends to become a “passive foreign investment company” within
the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.


 


(ll)          OFAC.
Neither the Company nor any of its Subsidiaries is, and, to the knowledge of the Company, no director, executive officer, agent,
employee, Affiliate or other Person acting for or on behalf of the Company or any of its Subsidiaries is, currently subject to
any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).
The Company will not knowingly use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available
such proceeds to any Subsidiary, joint venture partner or other Person or entity, towards any sales or operations in Cuba, Iran,
Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for the purpose of financing the activities of any Person currently
subject to any U.S. sanctions administered by OFAC.


 


(mm)       No
Additional Agreements. The Company does not have any agreement or understanding with any Purchaser with respect to the transactions
contemplated by the Transaction Documents other than as specified in the Transaction Documents.


 


(nn)        Accountants.
Cherry Bekaert LLP, who will express their opinion with respect to the audited financial statements and schedules to be included
as a part of any Registration Statement prior to the filing of any such Registration Statement, are independent accountants as
required by the Securities Act.


 


(oo)        Application
of Takeover Protections. The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby will not impose any restriction on any Purchaser, or create in any party (including any current stockholder of the Company)
any rights, under any share acquisition, business combination, poison pill (including any distribution under a rights agreement),
or other similar anti-takeover provisions under the Company’s charter documents or the laws of its state of incorporation.


 


(pp)        Solvency.
Based on the financial condition of the Company as of the Closing Date, and except as described in the SEC Reports, immediately
after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder: (i) the fair saleable
value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s
existing debts and other liabilities (including known contingent liabilities) as they mature; and (ii) the Company’s assets
do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including
its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated
and projected capital requirements and capital availability thereof. The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. The SEC Reports set forth as of the date hereof all outstanding secured and
unsecured Indebtedness of the Company, or for which the Company has commitments. The Company is not in default with respect to
any Indebtedness.


 


(qq)       FDA.
As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (the “FDA”) under the
Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (the “FDCA”) that is manufactured,
packaged, labeled, tested, distributed, sold, and/or marketed by the Company (each such product, a “Product”),
such Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed by the Company in compliance
with all applicable requirements under the FDCA and similar laws, rules and regulations relating to registration, investigational
use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices, good clinical
practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be
in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the knowledge of the Company, threatened,
Action against the Company, and the Company has not received any notice, warning letter or other communication from the FDA or
any other governmental entity, which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of,
the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Product,
(ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising
or sales promotional materials relating to, any Product, (iii) imposes a clinical hold on any clinical investigation by the Company,
(iv) enjoins production at any facility of the Company, (v) enters or proposes to enter into a consent decree of permanent injunction
with the Company, or (vi) otherwise alleges any violation of any such laws, rules or regulations by the Company, and which, either
individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of the Company
have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the
FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United
States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to
approving or clearing for marketing any product being developed or proposed to be developed by the Company.


 






    	 	 13	 



     


    

 


(rr)         Real
Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the meaning
of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon any Purchaser’s reasonable
request.


 


(ss)        Bank
Holding Company Act. The Company is not subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”)
and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Company
does not own or control, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities
or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation
by the Federal Reserve. The Company does not exercise a controlling influence over the management or policies of a bank or any
entity that is subject to the BHCA and to regulation by the Federal Reserve.


 


(tt)         Money
Laundering Laws. The operations of the Company are and have been conducted in compliance in all material respects with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes of all jurisdictions where the Company conducts its business, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively,
the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending, or to the knowledge
of the Company, threatened.


 


3.2          Representations
and Warranties of the Purchasers. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows:


 


(a)          Authority.
The Purchaser is either an individual or an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated
by the applicable Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. If the Purchaser
is not an individual, the execution and delivery of this Agreement by such Purchaser and performance by such Purchaser of the
transactions contemplated by this Agreement have been duly authorized by all necessary action on the part of such Purchaser. Each
Transaction Document to which the Purchaser is a party has been duly executed by such Purchaser, and when delivered by such Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.


 


(b)          No
Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the other Transaction Documents
to which it is a party, and the consummation by such Purchaser of the transactions contemplated hereby and thereby, will not (i) if
applicable, result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Purchaser is a party,
or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities
laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
rights or violations which would not, individually or in the aggregate, have a material adverse effect on the ability of such
Purchaser to perform its obligations hereunder or any of the other Transaction Documents to which such Purchaser is a party.


 






    	 	 14	 



     


    

 


(c)          Investment
Intent. The Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law, and the Purchaser is acquiring the Units and, upon exercise of
the Warrants, will acquire the Warrant Shares issuable upon exercise thereof, as principal for its own account and not with a
view to, or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable
state securities laws, provided, however, that by making the representations herein, such Purchaser does not agree to hold
any of the Securities for any minimum period of time and reserves the right, subject to the provisions of this Agreement, the
Warrant and the Registration Rights Agreement, at all times to sell or otherwise dispose of all or any part of such Securities
pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance
with applicable federal and state securities laws. Such Purchaser is acquiring the Securities hereunder in the ordinary course
of its business. Such Purchaser does not presently have any agreement, plan or understanding, directly or indirectly, with any
Person to distribute or effect any distribution of any of the Securities (or any securities which are derivatives thereof) to
or through any person or entity. The Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act or
an entity engaged in a business that would require it to be so registered as a broker-dealer.


 


(d)          Purchaser
Status. At the time the Purchaser was offered the Units, it was, and at the date hereof it is, and on each date on which it
exercises any Warrant it will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act. The
Investor Questionnaire delivered by the Purchaser in connection with this Agreement is complete and accurate in all respects as
of the date of this Agreement and the Closing Date and will be accurate in all respects as of the effective date of the Registration
Statement; provided, that the Purchaser shall be entitled to update such information by providing written notice thereof
to the Company.


 


(e)          General
Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general advertisement.


 


(f)           Experience.
The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk of an investment
in the Securities and, at the present time, is able to afford a complete loss of such investment.


 


(g)          Access
to Information. The Purchaser acknowledges that it has had the opportunity to review the Disclosure Materials and has been
afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives
of the Company concerning the terms and conditions of the Offering and the merits and risks of investing in the Securities, (ii) access
to information about the Company and its Subsidiaries and their respective financial condition, results of operations, business,
properties, management and prospects sufficient to enable it to evaluate its investment, and (iii) the opportunity to obtain
such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary
to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted
by or on behalf of the Purchaser or its representatives shall modify, amend or affect such Purchaser’s right to rely on
the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained
in the Transaction Documents. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary to
make an informed decision with respect to its acquisition of the Securities. The Purchaser has received no representations or
warranties from the Company, its employees, agents or attorneys in making this investment decision other than as set forth in
this Agreement.


 






    	 	 15	 



     


    

 


(h)          Certain
Trading Activities. Other than consummating the transactions contemplated hereunder, the Purchaser has not directly or indirectly,
nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, engaged in any transactions in the
securities of the Company (including, without limitation, any Short Sales involving the Company’s securities) since the
time that such Purchaser was first contacted by the Company, the Placement Agent or any other Person regarding the specific investment
contemplated hereby. Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of
all disclosures made to it in connection with this transaction, including the existence and terms of this transaction. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).


 


(i)          Brokers
and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Purchaser.


 


(j)          Independent
Investment Decision. The Purchaser has independently evaluated the merits of its decision to purchase Securities pursuant
to the Transaction Documents, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s
business and/or legal counsel in making such decision. The Purchaser understands that nothing in this Agreement or any other materials
presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Securities constitutes legal,
tax or investment advice. The Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has
deemed necessary or appropriate in connection with its purchase of the Securities. The Purchaser understands that the Placement
Agent has acted solely as the agent of the Company in this placement of the Shares and Warrants and such Purchaser has not relied
on the business or legal advice of the Placement Agent or its respective agents, counsel or Affiliates in making its investment
decision hereunder, and the Purchaser confirms that none of such Persons has made any representations or warranties to such Purchaser
in connection with the transactions contemplated by the Transaction Documents.


 


(k)          Reliance
on Exemptions. The Purchaser understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part
upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgements
and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Securities.


 


(l)          Transfer
or Resale. The Purchaser understands that except as provided in the Registration Rights Agreement and Section 4.1(b)
hereof: (i) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and
may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, or (B) such Purchaser
shall have delivered to the Company (if requested by the Company) an opinion of counsel to such Purchaser, in a form reasonably
acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration; (ii) any sale of the Securities made in reliance on Rule 144 may be made only
in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances
in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined
in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations
of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the
Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.


 


(m)         No
Governmental Review. The Purchaser understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the Offering.


 






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(n)          Regulation
M. The Purchaser is aware that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of Common
Stock and other activities with respect to the Common Stock by the Purchasers.


 


(o)          Residency.
The Purchaser’s residence (if an individual) or offices in which its investment decision with respect to the Securities was
made (if an entity) are located at the address immediately below such Purchaser’s name on its signature page hereto.


 


ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES


 


4.1          Transfer
Restrictions.


 


(a)          Compliance
with Laws. Notwithstanding any other provision of this Article IV, each Purchaser covenants that the Securities may
be disposed of only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities
Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities
Act, and in compliance with any applicable state and federal securities laws. In connection with any transfer of the Securities
other than (i) pursuant to an effective registration statement, (ii) to the Company, (iii) pursuant to Rule 144
(provided that the Purchaser provides the Company with reasonable assurances (in the form of seller and, if applicable,
broker representation letters) that the securities may be sold pursuant to such rule) or (iv) in connection with a bona fide
pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred
Securities under the Securities Act. As a condition of such transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement and the Registration Rights Agreement and shall have the rights of a Purchaser under this Agreement
and the Registration Rights Agreement with respect to such transferred Securities.


 


(b)          Legends.
Certificates evidencing the Securities shall bear any legend as required by the “blue sky” laws of any state and a
restrictive legend in substantially the following form, until such time as they are not required under Section 4.1(c):


 


NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED. [THESE SECURITIES HAVE NOT BEEN REGISTERED] UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.


 






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The Company acknowledges
and agrees that a Purchaser may from time to time pledge, and/or grant a security interest in, some or all of the legended Securities
in connection with applicable securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide margin loan.
Such a pledge would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee,
secured party or pledgor shall be required in connection with the pledge, but such legal opinion shall be required in connection
with a subsequent transfer or foreclosure following default by the Purchaser transferee of the pledge. No notice shall be required
of such pledge, but Purchaser’s transferee shall promptly notify the Company of any such subsequent transfer or foreclosure.
Each Purchaser acknowledges that the Company shall not be responsible for any pledges relating to, or the grant of any security
interest in, any of the Securities or for any agreement, understanding or arrangement between any Purchaser and its pledgee or
secured party. At the applicable Purchaser’s expense, the Company will execute and deliver such reasonable documentation
as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including
the preparation and filing of any required prospectus supplement under Rule 424(b) under the Securities Act or other applicable
provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. Each Purchaser acknowledges
and agrees that, except as otherwise provided in Section 4.1(c), any Securities subject to a pledge or security interest
as contemplated by this Section 4.1(b) shall continue to bear the legend set forth in this Section 4.1(b)
and be subject to the restrictions on transfer set forth in Section 4.1(a).


 


(c)          Removal of
Legends. The legend set forth in Section 4.1(b) above shall be removed and the Company shall issue or caused to
be issued a certificate without such legend or any other legend to the holder of the applicable Securities upon which it is stamped,
if (i) such Securities are registered for resale under the Securities Act (provided that, if the Purchaser is selling
pursuant to the Registration Statement, the Purchaser agrees to only sell such Securities during such time that such registration
statement is effective and not withdrawn or suspended, and only as permitted by such registration statement), (ii) such Securities
are sold or transferred pursuant to Rule 144 (if the transferor is not an Affiliate of the Company), (iii) if such Securities are
eligible to be sold, assigned or transferred under Rule 144 (provided that a Purchaser provides the Company with reasonable assurances
that such Securities are eligible for sale, assignment or transfer under Rule 144 which shall not include an opinion of counsel),
(iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that such Purchaser provides
the Company with an opinion of counsel to such Purchaser, in a form reasonably acceptable to the Company, to the effect that such
sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the Securities
Act or (v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling
judicial interpretations and pronouncements issued by the Commission). The Company shall cause its counsel to issue any legal opinion
(including, without limitation, the opinion referred to in the Transfer Agent Instructions) to the Company’s transfer agent
on each Effective Date and in connection with any sale or transfer pursuant to Rule 144 in compliance with this Section 4.1(c).
Any fees (with respect to the Transfer Agent, Company Counsel or otherwise) associated with the removal of such legend shall be
borne by the Company. Following the Effective Date, or at such earlier time as a legend is no longer required for certain Securities,
the Company will no later than three Trading Days following the delivery by a Purchaser (i) to the Transfer Agent (with notice
to the Company) of a legended certificate representing Shares or Warrant Shares (endorsed or with stock powers attached, signatures
guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer) or (ii) to the Company of an Exercise
Notice in the manner stated in the Warrants to effect the exercise of such Warrant in accordance with its terms, and any other
documents required by Section 4.1(a), deliver or cause to be delivered to such Purchaser either: (A) provided that
the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, credit the aggregate number of shares
of Common Stock to which such Purchaser shall be entitled to such Purchaser’s or its designee’s balance account with
DTC through its Deposit/Withdrawal at Custodian system or (B) if the Transfer Agent is not participating in the DTC Fast Automated
Securities Transfer Program, issue and deliver (via reputable overnight courier) to such Purchaser, a certificate representing
such Securities that is free from all restrictive and other legends, registered in the name of such Purchaser or its designee (the
date by which such credit is so required to be made to the balance account of such Purchaser’s or such Purchaser’s
nominee with DTC or such certificate is required to be delivered to such Purchaser pursuant to the foregoing is referred to herein
as the “Required Delivery Date”). The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1. Notwithstanding any
of the foregoing to the contrary, certificates for Shares or Warrant Shares subject to legend removal hereunder shall, upon Purchaser’s
request, be transmitted by the Transfer Agent to a Purchaser by crediting the applicable balance account at the Depository Trust
Company as directed by such Purchaser.


 






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(d)          Acknowledgement.
Each Purchaser hereunder acknowledges its primary responsibilities under the Securities Act and accordingly will not sell or otherwise
transfer the Securities or any interest therein without complying with the requirements of the Securities Act. While the Registration
Statement remains effective, each Purchaser hereunder may sell the Shares and Warrant Shares in accordance with the plan of distribution
contained in the Registration Statement and if it does so it will comply therewith and with the related prospectus delivery requirements
unless an exemption therefrom is available or unless the Securities are sold pursuant to Rule 144. Each Purchaser, severally and
not jointly with the other Purchasers, agrees that if it is notified by the Company in writing at any time that the Registration
Statement registering the resale of the Shares or the Warrant Shares is not effective or that the prospectus included in such Registration
Statement no longer complies with the requirements of Section 10 of the Securities Act, the Purchaser will refrain from selling
such Shares and Warrant Shares until such time as the Purchaser is notified by the Company that such Registration Statement is
effective or such prospectus is compliant with Section 10 of the Securities Act, unless such Purchaser is able to, and does,
sell such Shares or Warrant Shares pursuant to an available exemption from the registration requirements of Section 5 of the
Securities Act. Both the Company and its Transfer Agent, and their respective directors, officers, employees and agents, may rely
on this Section 4.1(d) and each Purchaser hereunder will indemnify and hold harmless each of such persons from any
breaches or violations of this Section 4.1(d).


 


4.2          Reservation
of Common Stock. The Company shall take all action necessary to at all times have authorized, and reserved for the purpose
of issuance from and after the Closing Date, the number of shares of Common Stock issuable upon exercise of the Warrants issued
at the Closing (without taking into account any limitations on exercise of the Warrants set forth in the Warrants).


 


4.3          Furnishing
of Information. In order to enable the Purchasers to sell the Securities under Rule 144, until the earlier of (i) one year
from the Closing Date or (ii) the occurrence of a Fundamental Transaction (as defined in the Warrant) pursuant to which the Company
is no longer a reporting company under the Exchange Act, the Company shall use its commercially reasonable efforts to timely file
(or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company
after the date hereof pursuant to the Exchange Act. Except as set forth in clause (ii) above, during such period, if the Company
is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available
in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144.


 


4.4          No Integration.
The Company shall not, and shall use its reasonable best efforts to ensure that no Affiliate of the Company shall, sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that will be integrated with the offer or sale of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Purchasers, or that will be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing
of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.


 


4.5          Securities
Laws Disclosure; Publicity. The Company shall issue a press release disclosing the material terms of the transactions contemplated
hereby (the “Press Release”) no later than 9:00 A.M., New York City time, on the Trading Day immediately following
the date of this Agreement. In addition, the Company shall file a Current Report on Form 8-K (the “8-K Filing”)
with the Commission describing the terms of the Transaction Documents (and including as exhibits to such Current Report on Form
8-K this Agreement, the form of the A and B Warrants and the Registration Rights Agreement) on or before the fourth Business Day
following the date hereof. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser or
any Affiliate or investment adviser of any Purchaser, or include the name of any Purchaser or any Affiliate or investment adviser
of any Purchaser in any press release or filing with the Commission (other than the Registration Statement) or any regulatory agency
or Trading Market without the prior written consent of such Purchaser, except (i) as required by federal securities law in
connection with (A) any registration statement contemplated by the Registration Rights Agreement or (B) the filing of
Transaction Documents (including signature pages thereto) with the Commission or (ii) to the extent such disclosure is otherwise
required by law, request of the Staff of the Commission or Trading Market regulations. From and after the issuance of the Press
Release, no Purchaser shall be in possession of any material, non-public information received from the Company, any Subsidiary
or any of their respective officers, directors, employees or agents, that is not disclosed in the Press Release unless a Purchaser
shall have executed a written agreement regarding the confidentiality and use of such information, which written agreement shall
survive the execution of this Agreement and the Closing.


 






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4.6          Confidentiality.
Each Purchaser, severally and not jointly with the other Purchasers, covenants that, until such time as the transactions contemplated
by this Agreement are publicly disclosed by the Company as described in Section 4.5, (i) such Purchaser shall maintain
the confidentiality of all disclosures made to it in connection with this transaction, including the existence and terms of this
transaction and the information included in the Transaction Documents, and (ii) neither such Purchaser nor any Person acting on
its behalf or pursuant to any understanding with it shall engage in any purchase or sale of securities of the Company (including
Short Sales). Notwithstanding the preceding clause (ii), in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets,
the covenant set forth above shall apply only with respect to the portion of assets managed by the portfolio manager that has knowledge
about the financing transaction contemplated by this Agreement.


 


4.7          Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any
Purchaser is an “acquiring person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, in either case solely by virtue
of receiving Securities under the Transaction Documents or under any other written agreement between the Company and the Purchasers.


 


4.8          Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
including this Agreement, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide
any Purchaser or its agents or counsel with any information regarding the Company that the Company believes constitutes material
non-public information without the express written consent of such Purchaser, unless prior thereto such Purchaser shall have executed
a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser
shall be relying on the foregoing covenant in effecting transactions in securities of the Company.


 


4.9          Use of Proceeds.
The Company shall use the net proceeds from the sale of the Units hereunder for working capital and general corporate purposes
and shall not use such proceeds for: (a) the redemption of any securities of the Company, or (b) the settlement of any outstanding
litigation.


 


4.10        Indemnification
of Purchasers.


 


(a)          Subject to the
provisions of this Section 4.10, the Company will indemnify and hold each Purchaser, such Purchaser’s directors, officers,
shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding
such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents,
members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”), harmless from
any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party
may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements
made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser
in any capacity, or any other Purchaser Party, by any stockholder of the Company who is not an Affiliate of such Purchaser, with
respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such
Purchaser’s representations, warranties or covenants under any of the Transaction Documents or any agreements or understandings
such Purchaser may have with any such stockholder or any violations by the Purchaser of any applicable laws or any conduct by such
Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance).


 






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(b)          Promptly after
receipt by any Purchaser Party (the “Indemnified Person”) of notice of any demand, claim or circumstances which
would or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity
may be sought pursuant to this Section 4.10, such Indemnified Person shall promptly notify the Company in writing and
the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person,
and shall assume the payment of all fees and expenses relating to such action, proceeding or investigation; provided, however,
that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder
except to the extent that the Company is actually and materially prejudiced by such failure to notify. In any such proceeding,
any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Person unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention
of such counsel; (ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ counsel
reasonably satisfactory to such Indemnified Person in such proceeding; or (iii) in the reasonable judgment of counsel to such
Indemnified Person, representation of both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one
such separate counsel. The Company shall not be liable for any settlement of any proceeding effected without its written consent,
which consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent of the Indemnified
Person, which consent shall not be unreasonably withheld, delayed or conditioned, the Company shall not effect any settlement of
any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified
Person from all liability arising out of such proceeding.


 


4.11          Principal
Trading Market Listing. If necessary, the Company shall prepare and file with the Principal Trading Market, in the time and
manner required by such Principal Trading Market, an additional shares listing application covering all of the Shares and Warrant
Shares and shall use its commercially reasonable efforts to take all steps necessary to cause all of the Shares and Warrant Shares
to be approved for listing or quotation on the Principal Trading Market as promptly as possible thereafter.


 


4.12          Form D;
Blue Sky. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof to any Purchaser, promptly upon such Purchaser’s written request. The Company shall take such action as the
Company shall reasonably determine is necessary in order to qualify the Securities for sale at the Closing to the Purchasers, or
to obtain an exemption from such qualification, under applicable state securities or “blue sky” laws, and the Company
shall provide evidence of such actions promptly upon the written request of any Purchaser.


 


4.13          Delivery
of Shares and Warrants After Closing. The Company shall deliver, or cause to be delivered, to each Purchaser the respective
Shares and Warrants purchased by such Purchaser within three Trading Days following the Closing Date.


 


ARTICLE V

CONDITIONS PRECEDENT TO CLOSING


 


5.1          Conditions
Precedent to the Obligations of the Purchasers to Purchase Securities. The obligation of each Purchaser to acquire Units at
the Closing is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any of which may
be waived by such Purchaser (as to itself only):


 


(a)          Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material
respects (except for those representations and warranties which are qualified as to materiality, in which case such representations
and warranties shall be true and correct in all respects) as of the date when made and as of the Closing Date, as though made on
and as of such date, except for such representations and warranties that speak as of a specific date.


 


(b)          Performance.
The Company shall have performed, satisfied and complied in all material respects with any and all covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.


 


(c)          No Injunction.
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.


 






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(d)          No Material
Adverse Change. Since the date of execution of this Agreement, no event or series of events shall have occurred that has had
a Material Adverse Effect.


 


(e)          No Suspensions
of Trading in Common Stock. The Common Stock (i) shall be designated for listing or quotation on the Principal Trading
Market and (ii) shall not have been suspended, as of the Closing Date, by the Commission or the Principal Trading Market from
trading on the Principal Trading Market nor shall suspension by the Commission or the Principal Trading Market have been threatened,
as of the Closing Date, either (A) in writing by the Commission or the Principal Trading Market or (B) by falling below
any minimum listing maintenance requirements of the Principal Trading Market.


 


(f)          Company Deliverables.
The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).


 


5.2          Conditions
Precedent to the Obligations of the Company to Sell Securities. The Company’s obligation to sell and issue the Units
at the Closing to each Purchaser is subject to the fulfillment on or prior to the Closing Date of the following conditions, any
of which may be waived by the Company:


 


(a)          Representations
and Warranties. The representations and warranties made by the Purchaser in Section 3.2 hereof shall be true and
correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which
case such representations and warranties shall be true and correct in all respects) as of the date when made, and as of the Closing
Date as though made on and as of such date, except for representations and warranties that speak as of a specific date.


 


(b)          Performance.
The Purchaser shall have performed, satisfied and complied in all material respects with any and all covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior to the
Closing Date.


 


(c)          No Injunction.
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.


 


(d)          Purchaser Deliverables.
The Purchaser shall have delivered its Purchaser Deliverables in accordance with Section 2.2(b).


 


ARTICLE VI

MISCELLANEOUS


 


6.1          Fees and
Expenses. The Company and the Purchasers shall each pay the fees and expenses of their respective advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party in connection with the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties
levied in connection with the sale and issuance of the Units to the Purchasers.


 


6.2          Entire Agreement.
The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with
respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other
such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the
Transaction Documents.


  






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6.3          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via facsimile (provided the sender receives a machine-generated confirmation of successful transmission) at the facsimile number
specified in this Section 6.3 prior to 5:00 P.M., New York City time, on a Trading Day, (b) the next Trading Day
after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in
this Section 6.3 on a day that is not a Trading Day or later than 5:00 P.M., New York City time, on any Trading Day,
(c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next
day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given, if such notice
or communication is delivered via electronic mail or any other method not identified in the preceding clauses (a) – (c).
The address for such notices and communications shall be as follows:




 





	 	If to the Company:	MRI Interventions, Inc.
	 		5 Musick
	 		Irvine, CA 92618
	 		Telephone No.: (949) 900-6833
	 		Facsimile No.: (949) 900-6834
	 		Attention: Harold A. Hurwitz, Chief Financial Officer
	 		
	 	With a copy to:	Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
	 		165 Madison Avenue, Suite 2000
	 		Memphis, TN 38103
	 		Telephone No.: (901) 526-2000
	 		Facsimile No.: (901) 577-4234
	 		Attention: Richard F. Mattern, Esq.
	 		
	 	If to a Purchaser:	To the address set forth under such Purchaser’s name on the signature page hereof;




 


or such other address as may be designated
in writing hereafter, in the same manner, by such Person.


 


6.4          Amendments;
Waivers; No Additional Consideration. No provision of this Agreement may be waived, modified, supplemented or amended except
in a written instrument signed, in the case of an amendment, by the Company and Required Purchasers (which, for this purpose, must
include all Major Purchasers) at the time of the amendment (which amendment shall be binding on all Purchasers) or, in the case
of a waiver, by the party against whom enforcement of any such waiver provision is sought. No waiver of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission
of either party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration (including
any modification of any Transaction Document) shall be offered or paid to any Purchaser to amend or consent to a waiver or modification
of any provision of any Transaction Document unless the same consideration is also offered to all of the Purchasers who are then
parties to this Agreement. For clarification purposes, the preceding sentence constitutes a separate right granted to each Purchaser
by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class
and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition
or voting of Securities or otherwise.


 


6.5          Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as
if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue
of the authorship of any provisions of this Agreement or any other Transaction Documents.


 


6.6          Successors
and Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors
and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior
written consent of the Required Purchasers at that time, except in the event of a merger or in connection with another entity acquiring
all or substantially all of the Company’s assets. Any Purchaser may assign its rights hereunder in whole or in part to any
Person to whom such Purchaser assigns or transfers any Securities in compliance with the Transaction Documents and applicable law,
provided such transferee shall agree in writing to be bound, with respect to the transferred Securities, by the terms and conditions
of this Agreement that apply to the “Purchasers.”


 






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6.7          No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except each Purchaser Party
is an intended third party beneficiary of Section 4.10.


 


6.8          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretation, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its
respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject
to the jurisdiction of any such New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum.
Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.


 


6.9          Survival.
Subject to applicable statute of limitations, the representations, warranties, agreements and covenants contained herein shall
survive the Closing and the delivery of the Securities pursuant to the Closing.


 


6.10        Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission,
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.


 


6.11        Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.


 


6.12        Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
the Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and
the Company does not timely perform its related obligation within the period therein provided, then such Purchaser may, in its
sole discretion, rescind or withdraw any such notice, demand or election in whole or in part, without prejudice to its future actions
and rights, upon written notice to the Company prior to the Company’s performance of the related obligation.


 


6.13        Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer
Agent of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that
fact and an agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith
or, if required by the Transfer Agent, a bond in such form and amount as is required by the Transfer Agent. The applicants for
a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance
of such replacement Securities. If a replacement certificate or instrument evidencing any Securities is requested due to a mutilation
thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance
of a replacement.


 






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6.14          Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the
foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection
with any action for a temporary restraining order) the defense that a remedy at law would be adequate.


 


6.15          Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.


 


6.16          Additional
Closings. Each Purchaser acknowledges that, in addition to the Closing, the Company may hold one or more other closings for
the purchase and sale of Units in the Offering, whether before and/or after the Closing Date.


 


6.17          Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser under any Transaction Document. The decision of each Purchaser to purchase Securities
pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and independently of
any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results
of operations, condition (financial or otherwise) or prospects of the Company or any Subsidiary which may have been made or given
by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser and none of its agents or employees
shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information, materials,
statements or opinions. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no other Purchaser
has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as
agent of such Purchaser in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any Proceeding for such purpose. It is expressly understood and agreed that each provision
contained in this Agreement is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively
and not between and among the Purchasers.


 


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    	25



    	 



    

 



IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed as of the date first indicated above.


 


MRI Interventions,
Inc. 





	 	 	 	 	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:	 	 	 







  


[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


 



     


    	 



    




 


[PURCHASER SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT]


 


Aggregate Purchase Price (Subscription
Amount): ___________________________________________________________________


 


If Purchaser is an INDIVIDUAL, or if purchased as JOINT TENANTS,
as TENANTS IN COMMON or as COMMUNITY PROPERTY: 





	 	 	 	 	 	 	 	 
	Print Name(s)	 	Social Security Number(s)
	 	 	 	 	 	 
	 	 	 	 	 	 
	Signature(s) of Purchaser(s)	 	Signature(s) of Purchaser(s)
	 	 	 	 	 	 
	Address for Notice:	 	Delivery Instructions (if different than Notice Address):
	 	 	 
	 	 	 
	 	 	 
	Telephone:	 	 	 
	Fax:	 	 	Street
	Email:	 	 	 
	 	 	 
	With a copy to:	 	City/State/Zip
	 	 	 	 	 	 
	 	 	 	 	 	Attention:	 	 
	 	 	 	 	 	 	 
	Telephone:	 	 	Telephone:	 
	Fax:	 	 	 
	Email:	 	 	 







 


If Purchaser is a CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP
or TRUST: 


	 	 	 	 	 	 
	Name of Entity	 	Federal Taxpayer ID Number
	 	 	 	 	 	 
	By: 	 	 	 
	Name: 	 	 	 
	Title: 	 	 	State of Organization








	 	 	 	 	 	 	 	 
	Address for Notice:	 	Delivery Instructions (if different than Notice Address):
	 	 	 
	 	 	 
	 	 	 
	Telephone:	 	 	 
	Fax:	 	 	Street
	Email:	 	 	 
	 	 	 
	With a copy to:	 	City/State/Zip
	 	 	 	 	 	 
	 	 	 	 	 	Attention:	 	 
	 	 	 	 	 	 	 
	Telephone:	 	 	Telephone:	 
	Fax:	 	 	 
	Email:	 	 	 







 







     


    	 



    

 


Schedule 3.1(a)


 


Subsidiaries


 


	Name of Subsidiary	Jurisdiction of Formation
	 	 
	MRI Interventions (Canada) Inc.	Canada (New Brunswick)


 






    	Schedule 3.1(a)



    	 



    




 


Schedule 3.1(g)


 


Capitalization


 


The authorized capital stock of the Company
consists of: (i) 200,000,000 shares of Common Stock; and (ii) 25,000,000 shares of preferred stock, par value $0.01 per share.


 


As of September 30, 2015, there were: (i)
74,971,026 shares of Common Stock outstanding; (ii) no shares of preferred stock outstanding; (iii) 11,671,309 shares of Common
Stock subject to outstanding option grants issued by the Company; and (iv) 20,768,692 shares of Common Stock subject to outstanding
warrants issued by the Company.


 


As of September 30, 2015, there were 11,671,309
shares of the Company’s common stock issuable pursuant to outstanding option grants issued by the Company.


 


As of September 30, 2015, there were 20,768,692
shares of the Company’s common stock issuable pursuant to outstanding warrants issued by the Company.


 


“July 2012 Warrants”:
The July 2012 Warrants’ exercise price is reduced, on a weighted average basis, in the event the Company issues shares of
common stock below the then prevailing exercise price of the July 2012 Warrants (previously, $1.41 per share). As of December 24,
2014, the July 2012 Warrants’ exercise price was adjusted to $1.19 per share.


 


“January 2013 Warrants”:
The January 2013 Warrants’ exercise price is reduced in the event the Company issues shares of common stock below the then
prevailing exercise price of the January 2013 Warrants (previously, $1.75 per share). As of December 24, 2014, the January 2013
Warrants’ exercise price was adjusted to $0.64 per share.


 






    	Schedule 3.1(g)



    	 



    

 


Schedule 3.1(o)


 


Liens


 


“November 2010 Notes”:
In November 2010, the Company issued junior secured notes in the aggregate principal amount of $3,000,000 to various purchasers
in a private placement. The notes mature in November 2020, and principal and accrued interest under the notes are payable in a
single installment upon maturity. The notes are secured by a security interest in the assets of the Company, which security interest
is junior and subordinate to the security interest that secures the notes described in the following two paragraphs.


 


“Brainlab AG Note”:
In March 2013, the Company issued an amended and restated secured note in the principal amount of $4,289,444 to Brainlab AG. The
note matures in April 2016, and principal and accrued interest of $740,000 under the note are payable in a single installment upon
maturity.


 


“March 2014 Notes”:
In March 2014, the Company issued 12% second-priority secured non-convertible promissory notes in the aggregate principal amount
of $3,725,000 to various purchasers in a private placement. The notes mature in March 2019. Interest under the notes is payable
semi-annually, in arrears, on each six-month and one-year anniversary of the issuance date. The notes are secured by a security
interest in the assets of the Company, which security interest is junior and subordinate to the security interest that secures
the promissory note issued to Brainlab AG, as described in the preceding paragraph.


 






    	Schedule 3.1(o)



    	 



    

 


Schedule 3.1(x)


 


Registration Rights


 


“Third Amended and Restated Investor
Rights’ Agreement”: The Company is a party to that certain Third Amended and Restated Investor Rights’ Agreement
dated as of September 20, 2006, with certain of the Company’s stockholders. That agreement provided for certain demand and
piggyback registration rights. However, given the passage of time since the agreement was entered into, all stockholders who were
parties to the agreement are not presently affiliates of the Company and may sell their shares pursuant to Rule 144 under the Securities
Act without the restrictions associated with affiliate sales of securities under Rule 144.


 


“Registration Rights Agreement”:
In connection with the Company’s December 2014 PIPE financing, the Company entered into a Registration Rights Agreement with
the investors in the PIPE financing, dated as of December 24, 2014, which obligated the Company to file a resale registration statement
covering the securities issued in connection with the transaction. The resale registration statement was filed with the Securities
and Exchange Commission on January 13, 2015 and was declared effective on January 26, 2015. The Company’s obligation to maintain
said resale registration statement ceases as of December 25, 2015.


 






    	Schedule 3.1(x)



    	 



    

 


EXHIBIT A


 


Registration Rights Agreement


 


Please see attached.


 






     


    	 



    

 


EXHIBIT B


 


A Warrant


 


Please see attached.


 






     


    	 



    

 


EXHIBIT C


 


B Warrant


 


Please see attached.